Netflix Inc (NASDAQ:NFLX) the streaming giant, experienced its weakest subscriber growth in two years causing a sharp decline in latest additions worldwide. This is mainly due to increasing competition from the likes of Amazon.com Inc. but Netflix Inc. is hopeful to accomplish its international rollout by the end of the year.
According to the Netflix Inc., earlier increase in prices also resulted in reduced number of subscribers mainly in the U.S.
In the March quarter Netflix Inc (NFLX) had 6.74 million new users and 3.28 million in the June quarter last year. But the latest quarter is the weakest as for the June quarter company was expecting an increase of 2.5 million subscribers and ending the quarter with 83.18 million subscribers but it missed its expectations and added only added 1.68 million streaming subscribers.
According to FactSet, for the current quarter, analysts are projecting 3.5 million new subscribers while Netflix projects 2.3 million additional streaming subscribers.
On the other hand, company reported its shareholders that it has come across challenges to enter into China. Although the regulatory and governing policies of in China for Netflix has become more challenging.
At the quarter’s end, its streaming expenses surged to $13.2 billion from $10.1 billion a year ago as the Netflix Inc., is spending more money into original shows, movies, and marketing.
Netflix Inc (NASDAQ:NFLX) declared an agreement to premiere CBS Corps new “Star Trek” series in 188 countries, apart from the U.S. and Canada. This is for the first time company has attained the international rights for an original show made by a competing streaming service.
If we look at the over quarterly results, Netflix Inc., reported second-quarter profit of $40.8 million, or 9 cents a share, compared with $26.3 million, or 6 cents a share, a year earlier. Revenue increased 28% to $2.11 billion. Analysts plotted by Thomson Reuters had anticipated a profit of 2 cents a share on $2.11 billion in revenue.
Recent Trading Activity:
Netflix, Inc (NASDAQ:NFLX) shares jumped +0.43% and ended the last trading session at $98.81. Moreover, it has a positive weekly performance of 4.37% and monthly performance of 3.53%.
When it comes to the stock recommendation, research analysts at Royal Bank of Canada repeated its “Buy” rating on the stock of Netflix Inc (NFLX).